16 Oct, 2023

Understanding Market Rates and the Growing Complexity of Payroll

In today’s evolving job market, understanding the market rate for employees and offering attractive benefits is essential for attracting and retaining talent in the food and agribusiness sector, says our Head of HR & Payroll Services, Mary McDonagh. However, it’s equally important to execute payroll efficiently and accurately, as it forms the foundation of a positive interaction with your employees

Payroll has become significantly more complex over the years, making access to qualified professionals who appreciate its vital role in employee retention and compliance more critical than ever.

Understanding Market Rates

One of the fundamental aspects of managing a team in the sector is understanding the market rate for various job positions. Market rates are the industry-specific salary or wage ranges for different roles and job levels. Keeping your compensation packages in line with these rates ensures your organisation remains competitive in the employment market. Failing to do so can lead to difficulty hiring and retaining skilled employees.

To determine market rates, companies conduct salary surveys, analyse industry benchmarks, and consider factors such as location, experience, and job responsibilities. By aligning your compensation strategy with market rates, you attract top talent, reduce turnover, and maintain employee morale.

Beyond competitive salaries, companies must also offer attractive benefits to stand out. Benefits include health insurance, retirement plans, paid time off, and flexible work arrangements when the opportunity is available.

Efficient and Accurate Payroll Execution in a Complex Landscape

While competitive salaries and appealing benefits are essential, how you execute payroll matters just as much. Payroll processing has become significantly more complex due to changing tax laws, regulations, and the diversity of compensation structures. Access to qualified payroll professionals who understand these complexities and the importance of accuracy and timeliness is vital for employee retention and regulatory compliance.

Payroll errors, late payments or discrepancies can lead to significant dissatisfaction and even legal complications. Automation and modern payroll systems can significantly reduce the likelihood of such issues, ensuring your employees are paid accurately and promptly. This is particularly relevant where you have temporary or seasonal staff. Moreover, these systems can streamline compliance with tax laws and regulations, reducing the risk of costly penalties.

Understanding the market rate for employees and offering competitive benefits are crucial for attracting and retaining talent. These efforts must be complemented by efficient and accurate payroll execution. Payroll has evolved into a complex landscape, underscoring the need for qualified professionals who appreciate its role in employee retention and compliance. When done well, it demonstrates your commitment to your employees’ financial well-being and helps build a strong foundation for a positive and productive workplace environment. By prioritising compensation competitiveness and payroll accuracy, your organisation can foster a culture of trust and satisfaction among employees, ultimately leading to business success.

“At ifac, we understand the needs of the Food & Agribusiness sector. Our expertise ensures that our payroll service not only guarantees compliance but also offers our clients the peace of mind that their employees are paid accurately and on time. We currently work with over 2,500 employers across the country.”

This article was first published in our 2023 Food & Agribusiness Report.